An analysis of the causes of inflation and unemployment in the Islamic Republic of Iran and providing a solution to overcome it

Document Type : Original Article

Author

Faculty member of the Department of Economics, Isfahan University

Abstract

Since the Islamic Republic of Iran has experienced fluctuating periods of inflation and stagnation, the goal of this article is to realize a macroeconomic model based on growth with moderate inflation. Based on the method of "De Haan" and "Sumner" (2004), this article identifies the time periods of inflationary expectations in Iran's economy during 1358 and 1399 (before the outbreak of Corona) and a conceptual model of the formation of inflationary expectations and influencing variables. In its formation and intensification in the period of applying new sanctions from 1385 to 1399 for Iran's economy. The results show that Iran's economy suffered from inflationary stagnation during the years of imposed war and also with the intensification of sanctions from 1985 to the end of 1999. Since these inflationary expectations created from 1385 to 1399 are affected by the "speculative" motive, in this regard, while introducing the features of the propulsion technologies to control the speculative motives in the formation of inflationary expectations, a financing model for the propulsion technologies in the Iranian economy in order to The increasing growth of investment with mild inflation along with the control of liquidity is introduced based on the transformation of the jump in the financial balance of the government into the support of the financial balance, the private sector (real estate) and securities.

Keywords